Food aid : PL-480 Title I and Title III; project impact evaluation

480 Title I and III food aid to Bangladesh. Impact evaluation, focusing on Title III assistance since 1978, is based on interviews with Bangladesh Government (BDG) officials. The Title III program's unique policy approach provides a useful model to other countries. The program, in concert with other donor efforts, has provided essential food suppplies at critical periods, strengthened BDG food policy planning and management, promoted private sector development in foodgrain marketing and textile production, and helped the BDG to: increase grain production (enhancing national food security and economic stability); improve food distribution; and reduce subsidies on food distributed through ration systems. The BDG has established a moderately successful procurement program, designed to provide sufficient price stability to allow grain producers to invest in high-yielding varieties. To forestall price increases during lean periods, it has stockpiled grain, releasing it as needed through open market sales. Nonetheless, due to high population growth, the nutritional status of the rural poor - the overwhelming majority of Bangladesh's population - has deteriorated in absolute and relative terms. Despite production increases, the annual gap between grain production and consumption is over 1 million tons. Bangladesh will continue to need food aid for at least another decade. Most program weaknesses have involved implementation rather than policy issues. The procurement program has not always stimulated production (due to delays in price announcements) or effectively reached small farmers. The open market system has been impeded by restrictions imposed by local bureaucracies. Also, performance with respect to self-help measures has been spotty. Efforts should be made to further refine policy objectives and/or increase USAID/B's involvement in programming local currency proceeds for developmental purposes. Key lessons learned are: (1) Title III programs require involved management as well as a learning period to work out problems, and thus should begin with simple, limited objectives; and (2) active oversight of projects financed with local currency generations is essential.